- Bitcoin surged to $82.9K and Ethereum jumped 15% as Trump’s tariff pause reignited bullish momentum across crypto markets.
- Stocks soared with the S&P 500 up 9.52%, its best day since 2008, as investors embraced optimism from the temporary tariff relief.
- Bullish social sentiment surged with a 3.5-to-1 ratio on Bitcoin as retail investors fueled a strong rally driven by FOMO and momentum.
According to Wu Blockchain, the crypto market witnessed a sharp rebound following Trump’s announcement of a 90-day tariff pause. Ethereum surged 15%, breaking past $1,600. XRP climbed 15.3%, trading over $2 for the first time in weeks. The total crypto market cap jumped 8.13% to hit $2.61 trillion. This marks a strong recovery from earlier trade-war-induced losses. Additionally, Bitcoin spiked to $82,900, with market sentiment turning decisively bullish. Liquidations totaled $587 million in 24 hours, with short positions accounting for $374 million.
Moreover, the stock market reacted with enthusiasm. The S&P 500 posted a 9.52% gain, its best day since 2008. Meanwhile, the Nasdaq soared 12.16%, the second-largest single-day rally in its history. Mega-cap tech stocks including Nvidia, Apple, Microsoft, Tesla, Amazon, and Meta all logged gains exceeding 10%. Hence, optimism from the tariff reprieve spilled over across asset classes.
Social Sentiment Amplifies Crypto Momentum
Santiment data shows social media sentiment has shifted dramatically. Traders now post 3.5 bullish comments for every 1 bearish mention on Bitcoin. Ethereum follows with a 2.3-to-1 bullish ratio. Consequently, retail investors have started reacting to the news, driving further buying pressure.
Besides, the recent Bitcoin price surge from $73,000 to $82,900 reflects this psychological shift. The strongest sentiment spike came on April 5, aligning with the initial rebound. Additionally, Ethereum’s social sentiment shows sustained improvement since April 7. These indicators suggest renewed investor confidence, despite underlying macroeconomic uncertainties.
Macroeconomic Moves Fuel Risk Appetite
Trump’s move to set a temporary 10% tariff for non-retaliating nations calmed trade war fears. However, tensions with China persist. China retaliated by hiking tariffs by 84% on U.S. goods. In response, Trump vowed to raise tariffs on Chinese imports to 125%, up from 104%. Despite these threats, markets rallied. Investors seemingly bet on the reprieve being extended or turning into longer-term negotiations.
Hence, market participants must remain cautious. While short-term rallies may continue, the unresolved nature of global trade tensions still looms large. Moreover, the current crypto rally appears driven by FOMO and speculative momentum.
